Some clients may insist on having liquidated damages set at a substantial amount under the home building contract ($300 per week and upwards), and there is nothing wrong with this practice. We all recognise that the client may suffer some loss if the builder is late in completing the project.
However, the builder too can play the same game. Where a client insists on substantial liquidated damages, the builder may agree to this, on the condition that if the project is completed early, the client must then pay the builder the same amount as an early completion bonus, given that the client will have the benefit of the project at an earlier date. Keep this tip up your sleeve – one day you may have to use it.
This entry was posted on Thursday, June 3rd, 2010 at 5:09 pm and is filed under General. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.